2016

1st Extraordinary
Session of the
Louisiana Legislature

House Legislative Services

Louisiana House of
Representatives
March 17, 2016

2016 1st Extraordinary Session

Special Session
Called by the Governors Proclamation No. 10 JBE 2016 to
address certain fiscal matters, including raising of revenue,
which cannot be considered in the 2016 Regular Session
Legislators limited to filing and debating bills that fall within the
subjects set out by the Governors call
25 day session, convening on Sunday, February 14, 2016, and
adjourning Wednesday, March 9, 2016

The Numbers
Total Instruments Filed:
127 House Bills
27 Senate Bills
Constitutional amendments:
14 constitutional amendments filed
1 will be submitted to the voters
by HLS, Louisiana House of Representatives

Session at a Glance
Budget

Fiscal
Action

Going
Forward

Beginning
Year
Shortfalls

Spending
Cuts

Remaining
Shortfalls

What Caused
Mid-Year
Shortfall?

Revenue
Raising

Additional
Studies

Revenue
Adjustments

by HLS, Louisiana House of Representatives

Beginning Year Shortfalls

FY17
FY16
FY15

by HLS, Louisiana House of Representatives

What Caused Mid-Year Shortfall?

Anticipated
FEMA
reimbursement
not realized:
$17,401,603

Revenue loss due to

drops in oil & gas
prices & decline in
income & sales tax
collections:
$570,100,000

Anticipated
executive
preamble cuts
not implemented:
$18,840,452

$954,139,310
FY 2015-2016
Shortfall

by HLS, Louisiana House of Representatives

Budget short to cover

unanticipated
expenditure needs:
$281,246,413

Unanticipated
expenditure
needs to be
absorbed:
$66,550,842

HB 2 Repeal of the SAVE Act

Under the former governors No Tax Pledge,
legislation raising taxes had to be offset by a
corresponding tax relief measure, or risk being vetoed.
The SAVE Act was passed as an offset for revenue
raising measures designed to save higher education.

The Act created a tax credit for institutions equal to an

unenforced student assessment, thus creating a tax
relief measure to offset tax increases necessary to save
higher education.

HB 2 was the first bill passed by the House in the Special

Session, demonstrating the members commitment to
structuring a budget with honest & straight-forward tax
policy.

by HLS, Louisiana House of Representatives

Spending Cuts
HB 122 Executive appropriation
$39,852,588 cut from total budget of $25 billion (after vetoes)

HB 118 Judicial appropriation

$3,991,120 cut from total budget of $180 million

HB 119 Legislative appropriation

$2,033,243 cut from total budget of $73 million

by HLS, Louisiana House of Representatives

Spending Cuts: State Contracts

HCR 2 directs state officials to review state contracts and:
Identify contracts that
can be terminated

Determine potential
savings from termination

Identify contracts that

have already been
terminated

Initial findings are to be reported to the

Joint Legislative Committee on the Budget by March 17th.

by HLS, Louisiana House of Representatives

Immediate Revenue Raising

HB 62

$214,200,000

Clean penny added to state sales & use tax

HB 61

$65,300,000

Cleans existing state sales & use tax

HB 14

$11,000,000

Increases cigarette tax by 22 cents per pack

HB 27

$4,700,000

Beer, wine, & spirits taxes increased

HB 43

$3,700,000

Caps annual vendor compensation

HB 39

$800,000

Automobile rental tax

HB 72

$600,000

Renews tax on telecommunications services

HB 18

$275,000

Discount for reporting & remitting tobacco taxes reduced

HB 28

$94,000

Discount for reporting & remitting alcohol taxes reduced

by HLS, Louisiana House of Representatives

Future Revenue Raising

HB 19

Expands the
companies subject
to the corporate
franchise tax

HB 95

Repeals state
deduction of federal
income taxes for
corporations

HB 87

Reduces insurance
premium tax credits
by 5% for 2 years

HB 29

Flat 6.5% tax rate for

corporate income
tax

HB 55

Add-back for certain

corporate income
tax deductions

HB 30

Collects sales tax

from internet sales

HB 59

Extends hotel-motel
tax to include online
bookings (Airbnb)

HB 20

Prohibits amount of
net operating loss
(NOL) deductions

HB 71

Reduces Enterprise
Zone tax credit

HB 116

Provides for order of

loss years for NOL

by HLS, Louisiana House of Representatives

Additional Revenue Adjustments

Executive Order JBE 16-4 reduced agency
spending by $21,734,240
Executive cuts approved by the Joint Legislative
Committee on the Budget totaled $38,490,799
SCR 2 tapped the Rainy Day fund for
$128,459,664
SB 4 tapped BP oil spill settlement funds for
$200,000,000
General Obligation (GO) Municipal Bond
restructuring of $81,641,065
by HLS, Louisiana House of Representatives

Remaining Shortfalls
Current Fiscal Year (FY16),
ending June 30, 2016

Next Fiscal Year (FY17),

beginning July 1, 2016

Cuts and revenue measures taken

this session reduced the $954
million shortfall by $884 million*

Cuts and revenue measures taken

this session will reduce the $2
billion shortfall by $1.25 billion*

$70 million*

$750 million*

*Based on Revenue Estimating Conference meeting on March 16, 2016

by HLS, Louisiana House of Representatives

Additional Studies
HCR 11
Creates the Task Force on
Structural Change in Budget
& Tax Policy

SCR 6
Establishes a task force to
study ad valorem taxes that
are offset by state tax credits

by HLS, Louisiana House of Representatives

HB 31
If approved by the voters, HB 31
would remove a deduction
allowing corporations to reduce
their state tax liability by the
amount of federal income taxes
they pay.

by HLS, Louisiana House of Representatives